Please answer both a and b with an explanation. PROBLEM 4 Ernie has
Image transcription text PROBLEM 4 _ Ernie has a fire in his apartment that destroys a valuable statue that he owned. He had boughtthe statue for $4,000 many years ago, but it had been appraised for $10,000 shortly before the fire. A monthlater Ernie finds a similar statue that he buys for $10,000. What are…